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The figures were backed up by budget analysis on Thursday which found people earning low-to-middle incomes will be hardest hit by rising average tax rates over the coming decade.

The rates will go up largely because as wages rise, people will pay more tax on their increased income, the Parliamentary Budget Office report found.

It noted the government's recent income tax cuts will slow the process.

Labor finance spokesman Jim Chalmers said this week's information has revealed the economy is not delivering for many.

"In Scott Morrison's Australia, working people pay more tax so the top end of town can pay less," he told AAP on Friday.

But Treasurer Josh Frydenberg has reassured workers their income tax is going down under the government's tax plan and low and middle income earners are receiving up to $530 in immediate relief each year.

"Our personal income tax plan is making income tax lower, fairer and simpler for all Australians," he told AAP.

Mr Frydenberg said the government's move to lift tax brackets is also designed to protect Australians from their average tax rate going up.

The government also wants people to know wage rises are on the way, with Finance Minister Mathias Cormann stressing on Friday strong economic and employment growth will make pay packets heavier in time.

Business Council of Australia chief executive Jennifer Westacott said wage growth hinges on increasing productivity.

That demands investment and the government, having dumped its big business tax cuts, will need to find another way to get that, she said.

"If we're not going to do something, we'd better do something else," she told ABC Radio on Friday.